BBC News Online: Business

HP-Compaq merger completed

Rebel Hewlett Packard shareholder Walter Hewlett gave up his fight to block the acquisition on Wednesday after losing a court case.

The deal was agreed by shareholders and the deal has now been closed, clearing the way for the launch of the new combined company on 7 May.

The merger between the two companies is the hardware sector's biggest ever tie-up.

Many HP shareholders opposed the deal because they thought it would distract from day-to-day operations at a time when computer makers worldwide were struggling to win new orders.

There were concerns also that HP was being asked to pay over the odds for Compaq.

Compaq shares closed up 2.23%, or 24 cents, at $11.00, 3 cents below the $11.03 value implied by the merger terms, which assign 0.6325 HP shares for each one of Compaq.

HP shares rose 2% percent, or 35 cents, to $17.44.

An HP spokeswoman said Compaq shareholders would get letters explaining the stock swap in the next week.